Land price inflation and affordable housing : causes and impacts by J. Thomas Black(
Book
)4
editions published
between
1984
and
1985
in
English
and held by
5 WorldCat member
libraries
worldwide
This article reports on inflation in residential land prices and possible causes for a sample of metropolitan areas. Prices
for standard lots and acreage were collected for 1975 and 1980 in 30 metropolitan areas and then analyzed, using multiple
regression to identify factors which could explain variations among metropolitan areas. The study found extreme price variations.
From 1975 to 1980, for example, the price of a standard residential lot increased as little as 31 percent in one area, while
rising 176 percent in another. Over 80 percent of the variation in lot price increases was explainable by a model combining
land supply and demand factors. In their order of importance, the factors were an index of regulatory restrictions, population
increases, per capita income increases, and job increases. The analysis suggests that public regulatory, infrastructure, and
tax policies can significantly affect land supply and demand and, in turn, prices. Communities that choose to manage growth
must monitor land supplies and demands and adjust their policies to maintain land availability to ensure competitive noninflationary
land markets. Otherwise, major increases in land prices for housing and businesses may result